Two days ago this Mini DJIA chart ended with a nice long spike to the downside, and since then the markets have been in a rally. Is the correction over? Not by long shot folks as the world markets are in a tailspin. If we only had a single wild crash much like 1987, then I would turn bullish much sooner. The problem with thinking about 1987 is that the 1987 crash was just a “Minor” degree crash. This crash will be larger by 4-degree levels and has a good chance of producing a long drawn out bearish phase, which has not happened since the 1930-32 decline. 1987 was 31 years away, while the 1929 peak to 2018 is now 89 years. I have learned not to ignore the Fibonacci 89 years as that is 1 year short of the 30-year cycle. If I use 60, 90 or 120 years, just divide those numbers into 30-year sections which I use as my time forecasts into the future.
We can be out by a minimum of 61% (.618) In price and time, so I want to be very careful when I move a big degree around in the future. Imagine jumping 100’s of years forwards or backward in time by drawing a number or letter on a chart! Flipping numbers and letters around like flipping burgers is just like a warp jump going to Mars. It might take until Supercycle degree wave 3 to colonize Mars towards the 2041 time period. 2041 is only a “one” degree jump while many others are over 3-degree levels off.
At the intraday level, it’s a different ball game, but I look for all the Minor degree turns first. All the warnings investors got with this market top, they still think they can escape before the crowd. Some experts are still as bullish as we can get and they seemed to want to ignore the reversal of fundamentals that the Trade War is bringing.
End of the month has arrived and if this bearish market has legs, our present little price support will never last!